Facebook (FB) shares are trading down about 4% following the company’s 2Q21 earnings report. The report was good across the board. Financial measures including EPS, revenue, operating income, and profit margins all exceeded Wall Street estimates. Engagement metrics matched estimates even as reopening economies likely distracted user attention. Management guidance for the balance of 2021 […]
Once again Apple (AAPL) reported an outstanding quarter, easily beating consensus estimates that were modestly above the guidance provided three months ago. When we last wrote about Apple, we noted how consistent the company’s financial performance was and how we could almost just repost the prior quarter’s blog. Well, how about this: “In 2Q21 3Q21, […]
Alphabet (GOOG/GOOGL) reported a second consecutive quarter of blowout earnings, smashing consensus estimates on all line items. Most impressive to us was 38% operating margin, about 700 basis points ahead of expectations. It was only a year or two ago that investors were very concerned about GOOG/L profitability as the company invested aggressively across each […]
We added AT&T (T) to Northlake’s portfolio of individual stocks. Not all clients use individual stocks as part of their strategy, and a few that do may not have purchased T due to unique client constraints. In most cases, the purchase was financed by cash reserves in client accounts. T is a low-risk, moderate-reward way […]
IBM reported another quarter of encouraging results against our investment thesis highlighted by a return to revenue growth at the best level in three years. Growth came from the right places driven by Red Hat and consulting services related to cloud initiatives. Revenue growth of 3% pales in comparison to the cloud leaders including Amazon, […]
When Home Depot (HD) last reported earnings we noted that the company was performing extremely well, but investors were worried about the company’s ability to grow sales this year compared to the heavy spending on home upgrades during the peak of stay-at-home orders in 2020. 4Q20 also saw some pressure on margins from elevated expenses […]
Disney (DIS) shares are trading down about -3% on a big up day for the market after reporting 2Q21 results. Despite reporting results ahead of expectations on financial metrics and seeing estimates for revenue, operating income, and EPS rise, the shares are falling due to a shortfall in growth for Disney+ subscribers and management guidance […]
When Activison Blizzard (ATVI) last reported, we noted that the stock looked fully valued but the company’s excellent track record, recent business strategy enhancements, and potential for positive surprises left us willing to wait out a period of lesser stock performance. 1Q21 was a big step in the right direction with ATVI easily beating Wall […]
Nexstar Media Group (NXST) reported strong 1Q21 earnings highlighted by a faster than expected improvement in core advertising, continued upside in profit margins, and a big beat on EBITDA. Management reaffirmed its key guidance metric based on the average of 2021 and 2022 free cash flow. The cyclical nature of political spending requires use of […]
Comcast reported another good quarter with growth in the dominant cable business sustaining in the high single digits with margins continuing to expand. Encouragingly, the much smaller but still material media businesses at NBC Universal and Sky are showing clear signs of emerging from the severe impacts of the pandemic. It seems like most every […]
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